PwC Announces Major Layoffs: 1,800 US Employees to be Impacted in Strategic Restructuring

PwC to lay off 1,800 employees, 2.5% of its US workforce to be impacted: Report

The layoffs are targeting employees in advisory, products, and technology divisions. The cuts will impact a range of positions, from associates to managing directors, including roles in business services, audit, and tax. The layoffs are part of a broader restructuring effort aimed at positioning the firm for future growth. PwC's U.S. leader, Paul Griggs, indicated in a memo that this move is intended to streamline the company's operations. This move follows his appointment as U.S. leader in May and a structural overhaul that took effect in July. The firm will notify the affected employees in October. The timing of the announcement, carries significance, as the firm had lost five colleagues in the 9/11 attacks. The last time PwC made such extensive layoffs in its U.S. operations was during the financial crisis in 2009. PwC's layoffs are happening against the backdrop of significant change within the company and broader economic pressures. Earlier this year, PwC became the largest customer of OpenAI's ChatGPT Enterprise, deploying the AI tool to over 100,000 employees in the U.S. and U.K. This move highlights the firm's commitment to integrating advanced technology into its operations. Meanwhile, PwC has faced challenges globally. In July, the firm initiated layoffs in its China operations due to regulatory scrutiny and a loss of corporate clients. It was followed after its involvement in the $78 billion Evergrande fraud investigation. The U.S. economy, while showing signs of a slowdown in job growth, is still expected to maintain a "soft landing," according to Treasury Secretary Janet Yellen.

PwC laying off 1,800 employees, plans restructuring of products business

The Big Four accounting firm is in the process of cutting employees in the U.S. and elsewhere, primarily in its U.S. advisory and products and technology operations, according to people familiar with the matter. The cuts, about half of which are offshore, span employees ranging from associates to managing directors and include business services, audit and tax, the people said. PwC plans to notify those affected, roughly 2.5% of the workforce at the U.S. unit, in October, the people said. PwC on Wednesday announced its plans for layoffs and the restructuring in a memo to U.S. staff obtained by The Wall Street Journal. "There will be an element of resource action that will impact a relatively small proportion of our people, something that is never easy," Paul Griggs, PwC's U.S. leader, said in the memo. "Ultimately, we are positioning our firm for the future, creating capacity to invest, and anticipating and reacting to the market opportunities of today and tomorrow," Griggs added. The executive said he would be remiss if he didn't acknowledge the announcement was being made on Sept. 11, a day on which the firm lost five colleagues. PwC said the last formal layoffs in its U.S. unit occurred in 2009. In 2017, the firm offered employees new roles as part of a restructuring and if employees declined, they left the firm. The firm has said that it has been an outlier among the Big Four over the past two years by not laying off anyone in the U.S. and having no plans to do so. EY, KPMG and Deloitte collectively laid off thousands of U.S. workers in that period. PwC plans to restructure its products and technology teams to further embed them in individual business lines and streamline processes in business services, Griggs said. The moves come after Griggs began as U.S. leader in May. In succeeding Tim Ryan in the role, he launched a structural overhaul that took effect in July, shifting the roughly 75,000-person U.S. unit back to three business lines from two . Tax returned to being a separate U.S. business in July. The firm in 2021 combined its tax-reporting and accounting businesses into one unit called trust solutions, with remaining revenue stemming from consulting solutions, which included tax consulting. "To remain competitive and position our business for the future, we are continuing to transform areas of our firm and are aligning our workforce to better support our strategy, including attracting and moving the right talent and skill sets to the areas where we need them most," Tim Grady, PwC's U.S. chief operating officer, said in a statement to The Wall Street Journal. The firm's chief products and technology officer, Joe Atkinson, in June became global chief AI officer after seven years in the role. Atkinson, on a 2021 podcast, said it is important to give employees the proper tools to carry out their responsibilities, not just update them on industry trends. That's largely why PwC often opts to build its own products instead of purchasing them from third-party vendors, he said at the time. PwC's products and technologies are aimed at addressing a range of corporate challenges, including managing risks around supply chains, data privacy and regulations. One of PwC's products, ProEdge, is a digital platform with more than 150 "immersive learning experiences" to help train employees on new skills. PwC will continue to evaluate whether to stop building certain products, among other investment decisions, the people familiar with the matter said. Many professional-services firms have experienced weaker demand in certain areas due to higher interest rates and weaker economic conditions. Several firms in the industry stepped up hiring to address pandemic-fueled changes in their corporate clients, but attrition over the last couple of years has been lower than they expected. The firms, some of which focus on individual performance as the basis for cuts, risk losing stature if they slash a sizable chunk of jobs at once.

PwC Reportedly Layoffs 1,800 US Employees, Marking First Major Job Cuts In 15 Years Amid Strategic Overhaul

PricewaterhouseCoopers (PwC) is reportedly laying off approximately 1,800 employees, marking its first formal cuts since 2009. What Happened: The layoffs will impact about 2.5% of PwC's U.S. workforce, primarily affecting its advisory, products, and technology operations. The cuts will span from associates to managing directors, including roles in business services, audit, and tax, The Wall Street Journal reported, citing people familiar with the matter. The firm plans to notify the affected employees in October. PwC's U.S. leader, Paul Griggs, mentioned in a memo that the layoffs are part of a strategy to position the firm for future growth and market opportunities, according to the report. Griggs also acknowledged the significance of the announcement date, Sept. 11, a day on which the firm lost five colleagues. The last formal layoffs in PwC's U.S. unit occurred in 2009. Pwc's restructuring aims to embed its products and technology teams into individual business lines and streamline business services processes. This move follows Griggs' appointment as U.S. leader in May and a structural overhaul that took effect in July. PwC did not immediately respond to Benzinga's request for comment. See Also: Veteran Pollster Weighs In On New Trump Vs. Harris Poll That Shows Ex-President Closing In: 'If You Support Policies That 60% Of The Country Opposes...You're Asking For Trouble' Why It Matters: The layoffs at PwC come at a time when the firm is undergoing significant changes and facing various challenges. Earlier this year, PwC became the largest customer of OpenAI's ChatGPT Enterprise, rolling out the AI product to over 100,000 employees across the U.S. and U.K. This move was seen as a major step towards integrating advanced technology into its operations. In July, PwC initiated layoffs in its China operations following a substantial loss of corporate clients and regulatory pressures. The firm is also under scrutiny by Chinese authorities for its role in the $78 billion Evergrande fraud investigation. Additionally, the U.S. economy is showing signs of a slowdown in job growth. Treasury Secretary Janet Yellen recently predicted a "soft landing" for the economy, despite concerns over job growth. She emphasized that the economy is "deep into a recovery" and "basically operating at full employment," even though recent job reports have been weak. Read Next: NBA Legend Shaq Shows Off His New Widebody Carbon Fiber Tesla Cybertruck: Elon Musk Has A One Word Reaction Image Via Shutterstock This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote Market News and Data brought to you by Benzinga APIs